Search for Small Business Loan Sources and receive your matched lender list AND received FOUR free Business eBooks worth $39.95!

Writing paper checks is just a routine part of every small business, right? It doesn’t have to be and in today’s high-tech world, it may actually be one of the worst ways to make business payments.

There are plenty of obvious and hidden costs associated with check-writing. Many business owners do not even think to examine these costs as they are not aware of any other way to make and track payments. However, researchers have found that each written check can cost a company between $3 and $5, taking into account the wages of the person printing the check and processing them, the price of ink, printers, check paper, and postage.

Those are the obvious costs. The secret costs include things like the cost of late payments. It is much easier to miss a payment due date when sending things by snail mail. Compare that to paying with an automated payment system that allows you to set enter in all due dates digitally and sends out payment for you on time. Plus your relationship with your vendors will be more productive if your payments always come on time.

Another hidden cost is the time it takes to approve paper checks. Even though the invoices have previously been okayed, someone has to physically bring the checks to management for final approval and signatures. The time of both the accounts payable employee and the management are being wasted in this step. An automated payment system would delete this duplicate process.

Writing paper checks also costs businesses money in the time it takes to go to reconcile the business finance records. With business credit cards or other digital payment systems, all the data is in one spot, easily accessed at any time.

If your business is suffering from any of these check-writing costs, you may want to consider some alternative methods that could both help your business save money and better track your working capital.

Search for Small Business Loan Sources and receive your matched lender list AND received FOUR free Business eBooks worth $39.95!